Don't Bank On It : Report Exposes Targeted Debanking of UK Crypto Firms, Threatening Industry Growth

The UK Crytoasset Business Council, Startup Coalition, and Global Digital Finance have released a report entitled ‘Don’t Bank On It’, which dives into the difficulties UK crypto and Web3 firms face opening and maintaining bank accounts. 

This follows an industry-wide survey that gives quantitative evidence that the problem is widespread and without urgent attention will derail the Government’s ambitions to ensure the UK’s “position as a global leader in cryptoassets”.

The report reveals that these issues are not limited to niche, early-stage, or reputationally murky projects. As well as a number of the most innovative and newest pre-seed and seed firms the respondents included publicly traded unicorn companies, making the findings all the more alarming.

Key findings include:

• 50% of firms surveyed had either been rejected from opening a bank account or had an account closed by one of the major banks.

• Only 14% successfully applied for a bank account without it being closed later.

• 81% agreed that difficulties accessing banking services are a significant barrier to success in the UK.

• 70% found it more likely they would leave the UK due to these challenges.

• 76% resorted to using banks they view as riskier due to high street banks' refusal to offer services.

Simon Jennings, Executive Director of the UKCBC commented:

“For far too long, these issues have been dismissed as anecdotal. Now, for the first time, we have concrete data to back them up - clear, undeniable evidence. This isn’t just a matter of inconvenience; it’s an existential threat to the sector.”

The report found that the UK has much to learn from international approaches. Elise Soucie Watts, Executive Director at GDF said:

"The Hong Kong Monetary Authority, for instance, has provided guidance urging banks to support virtual asset service providers (VASPs) licensed by the Securities and Futures Commission. Similarly, in France, regulatory measures include specific provisions that ensure designated VASPs cannot be refused banking services solely due to their involvement in the virtual asset industry. The UK needs to take heed of this"

Access to banking services is not a luxury, it is a basic requirement of doing business. Without action, firms will face increased operational risks, stifled innovation, and the potential need to relocate abroad. 

The report puts forward three simple recommendations:

• Increased Transparency: Require banks to provide clear reasons for account closures or refusals, except in cases of national security.

• Regulatory Alignment: Align banking requirements with FCA’s rigorous registration process to ensure consistent standards, in line with international competitor jurisdictions.

• FCA Oversight: The FCA should collect and publish data on banking denials to assess the scale of the issue and protect businesses.

Speaking about these solutions, Marcus Foster, Head of Campaigns at the Startup Coalition said:

“The FCA needs to step up and address these issues urgently. The status quo we are in is stifling innovation, undermining crypto and Web3 firms, and baking in significant risk for startups in the sector."

About Startup Coalition 

Startup Coalition, formerly the Coalition for a Digital Economy (Coadec), is an independent advocacy group that serves as the policy voice for Britain’s technology-led startups and scaleups.

Startup Coalition was founded in 2010 by Mike Butcher, Editor-at-Large of technology news publisher TechCrunch, and Jeff Lynn, Chairman and Co-Founder of online investment platform Seedrs.

Startup Coalition works across a broad range of policy areas that matter the most to startups and scaleups: access to talent, access to finance & regulation. We have over 3,500 startups on our mailing list.

Startup Coalition is also represented on the Department for Business and Trade’s Smart Data Council and on the Government’s Digital Economy Council.

About Global Digital Finance

GDF is the leading global members association advocating and accelerating the adoption of best practices for crypto and digital assets.

GDF’s mission is to promote and facilitate greater adoption of market standards for digital assets through the development of best practices and governance standards by convening industry, policymakers, and regulators.

The GDF mission is to make finance global and digital. Digital assets and decentralized financial market infrastructure have the potential to reshape financial services and markets to create truly global, accessible, and inclusive finance.

About the UK Cryptoasset Business Council

The UK Cryptoasset Business Council (UKCBC) champions the UK’s crypto ecosystem to support users, investors, and businesses – fostering innovation, consumer protection and growth through effective policy.

We educate policy and decision-makers, promote collaboration and best practice among the leading industry players, and advocate for clear regulation.

We are committed to trust, integrity and sustainability and work on behalf of the membership to positively influence the development of the UK’s crypto and Web3 ecosystems.

Click here to download the report .